On this page of StockholderLetter.com we present the latest annual shareholder letter from Performance Food Group Co — ticker symbol PFGC. Reading current and past PFGC letters to shareholders can bring important insights into the investment thesis.

 •  10/10/2024 Letter Continued (Full PDF)
 •  10/10/2023 PFGC Stockholder Letter
 •  More "Grocery & Drug Stores" Category Stockholder Letters
 •  PFGC Benford's Law Stock Score = 77

PFGC Shareholder/Stockholder Letter Transcript:

2024
ANNUAL
REPORT

NO CHANGES HERE
GEORGE
GEORGE L.
L. HOLM
HOLM
TO OUR
OUR
TO
STOCKHOLDERS
STOCKHOLDERS
Our Company had an outstanding fiscal
Our Company had an outstanding fiscal
year,
year, achieving
achieving record
record profit
profit results
results while
while
continuing our journey as one of the leading
continuing our journey as one of the leading
distributors of food and foodservice products
distributors of food and foodservice products
in the U.S. We have set ourselves apart by
in the U.S. We have set ourselves apart by
expanding into new and exciting markets
expanding into new and exciting markets
and broadening our range of products.
and broadening our range of products.
As a result, we are increasing our share
As a result, we are increasing our share
of the food-away-from-home market and
of the food-away-from-home market and
engagement with consumers.
engagement
engagement with
with consumers.
consumers.
Our sales growth has placed us among some
Our
sales
growth
has
us
among
Our
sales
growth
has placed
placed
uscountry.
among some
some
of
the
largest
companies
in the
In
of
largest
companies
in
country. In
of the
the PFG
largest
companies
in the
the
2024,
moved
higher on
thecountry.
Fortune In
500
2024,
PFG
moved
higher
on
the
Fortune
500
2024,
PFG moved
higher
on the Fortune
500
list,
securing
the No.
84 position.
This marks
list,
securing
the
No.
84
position.
This
marks
list, second
securingconsecutive
the No. 84 position.
marks
the
year that This
we were
the
consecutive
year
that
the second
second
consecutive
year
that we
we were
were
among
the top
100 largest
companies
in the
among
the
top
100
largest
companies
in
among
the
top
100
largest
companies
in the
the
U.S., according to Fortune.
U.S.,
according
to
Fortune.
U.S., according to Fortune.
We lead with our Foodservice segment,
We lead with our Foodservice segment,
We lead
with of
our
Foodservice
segment,
which
is one
the
country   s largest
which is one of the country   s largest
which is one
of the
largest
suppliers
of food
tocountry   s
independent
and chain
suppliers of food to independent and chain
suppliers of food
independent
and
chain
restaurants.
PFG   stosubstantial
and
expanding
restaurants. PFG   s substantial and expanding
restaurants.
substantial
and expanding
salesforce
is PFG   s
an important
competitive
salesforce is an important competitive
salesforce ispropelling
an important
competitive
advantage,
our business
to new
advantage, propelling our business to new
heights.
We have consistently
increased
our
advantage,
our business
to new
heights. Wepropelling
have consistently
increased
our
market
share,
especially
in the increased
independent
heights.
We
have
consistently
our
market share, especially in the independent
restaurant
space,
which remains
a significant
market
share,
especially
in the independent
restaurant
space,
which remains
a significant
and
profitable
opportunity.
Through
our
restaurant
space,
which remains
a significant
and
profitable
opportunity.
Through
our
continuous
development
of Through
proprietary
and
profitable
opportunity.
our
continuous development of proprietary
brands,
we believe
we areofatproprietary
the forefront of
continuous
development
brands,
we believe
we are at the forefront of
this
important
channel
andat
have
brands,
we believe
we are
the substantial
forefront of
this important
channel
and have
substantial
room
to grow. channel and have substantial
this
roomimportant
to grow.
room to grow.
In fiscal 2024, our Vistar segment also
In fiscal 2024, our Vistar segment also
achieved
solid our
growth
bysegment
expanding
into
In fiscal 2024,
Vistar
also
achieved
solid growth
by expanding
into
new
and
growing
channels
such
as
online
achieved
solid growth
by expanding
into
new
and growing
channels
such as online
fulfillment
and ecommerce
Vistar
new and growing
channels platforms.
such
as online
fulfillment
and e-commerce
platforms.
Vistar
is uniquely positioned as one of the largest
11
is uniquelyand
positioned
as oneplatforms.
of
thebeverages
largest
distributors
of candy,
snacks,
and
fulfillment
e-commerce
Vistar
distributors
ofcustomers
candy, snacks,
and
beverages
to
a range of
movie
is uniquely
positioned
asincluding
one of
the
largest
to
a rangevending
ofofcustomers
including
theaters,
machine
operators,
retail
distributors
candy,
snacks,
and movie
beverages
theaters,
vendingand
machine
operators,
retail
stores,
schools,
hotels,
among
others.
to a range of customers including movie
stores, schools, and hotels, among others.
theaters, vending machine operators, retail
The Company achieved $58.3 billion in
stores,
schools,
and hotels,
among others.
The
Company
achieved
in
net
revenue,
$493
million$58.3
in netbillion
income,
net revenue,
$435.9
million EBITDA
in net income,
and
$1.5
billion
in
Adjusted
during
The Company achieved $58.3 billion in
and $1.5
billion
in Adjusted
EBITDA several
during
fiscal
2024,
marking
solid growth
net revenue,
$435.9 million
in net in
income,
fiscal 2024,
marking
solid performance
growth in several
areas,
including
excellent
in
and $1.5
billion inexcellent
Adjustedperformance
EBITDA during
areas,
including
in
independent
restaurants.
fiscal
2024,
marking
solid
growth
in
several
independent restaurants.
areas, including excellent performance in
independent
EXECUTING
STRATEGIC
EXECUTING restaurants.
STRATEGIC M&A
M&A
EXECUTING
STRATEGIC
M&A
In
strongorganic
organic
performance,
In addition
addition to
to a
strong
performance,
PFG
PFG successfully
successfully expanded
expanded our
our business
business
through
targeted
acquisitions
key
In addition
to a strong
organicin
performance,
through
targeted
acquisitions
in
key
geographic
areas.
In 2024,
July 2024,
acquired
PFG successfully
expanded
ourPFG
business
geographies.
In July
PFG
acquired
Jos  
Santiago,
Inc.,
the
through
targeted
acquisitions
key
Jos  
Santiago,
Inc.,
the largest
largestinfoodservice
foodservice
distributor
in
our
geographies.
In July Rico,
2024,marking
PFG acquired
distributor
in Puerto
Puerto
Rico,
marking
our
Company   s
first
operating
company
located
Jos  
Santiago,
the largest
foodservice
Company   s
firstInc.,
operating
company
in
the theinCaribbean,
and expect
toour
present
distributor
in Puerto
Rico,
marking
located
the
Caribbean.
We
expect
strong
growth
opportunities
in
Company   s
first
operating company
strong
growth
opportunities
in the
the future
future
from
this
Additionally,
westrong
from
thisinacquisition.
acquisition.
In August
2024,
we
located
the Caribbean.
We expect
announced
our
to
Cheney
announced
our intention
intention
to acquire
acquire
Cheney
growth opportunities
in the
future from
this
Bros.,
Inc., aaAdditionally,
leading foodservice
foodservice
distributor
Bros,
Inc.,
leading
distributor
acquisition.
we announced
in
the
Southeastern
U.S.,
pending
regulatory
in
the
Southeastern
U.S.Cheney
We
closed
the
our
intention
to acquire
Bros.,
approval.
We
believe
that
these
deals
transaction
on
October
8th,
adding
to will
our
Inc., a leading foodservice distributor
in
build
onfoodservice
PFG   s legacy
strength
drive
strong
distribution
platform.
the Southeastern
U.S.,
pendingand
regulatory
sales
and profit growth
in the
term.
This
acquisition
increases
ourlong
scale
approval.
We believe
that these
dealsand
will
geographic
reach.
We
believe
that
these
buildalso
on PFG   s
legacy
strength
drive
PFG
acquired
OLM
Foods,and
which
is
deals
willon
build
on
PFG   s
strength
sales and
profit
growth
inlegacy
the
long
term. and
focused
developing
and
selling
highdrive sales
profit growth
in the long
term.
quality
foodand
products
and programs.
OLM
In fiscal 2024, PFG acquired Green Rabbit, a
has
partnered
with
our
Core-Mark
business
In
fiscal 2024,
PFGon
also
acquired
company
focused
online
orderGreen
fulfillment
to
sell inathe
convenience
store
channel.
Rabbit,
company
focused
on online
order
that
ships
directly
to
consumers
and vehicle
Convenience
is
an
important
growth
fulfillment
that
ships
directly
to
consumers
businesses.
added
three
for
andThe
OLMtransaction
is another
avenue
for our
andPFG,
businesses.
The
transaction
added
three
warehouses
dedicated
this business,
company
to capture
thisto
warehouses
dedicated
togrowth.
this business,
effectively doubling PFG   s fulfillment facilities.
effectively doubling PFG   s fulfillment facilities
Wefiscal
are optimistic
the prospects
for this
In
2024, PFGabout
acquired
Green Rabbit,
a
in this area. We are optimistic about the
company
focused
on online order fulfillment
platform going
forward.
prospects for this platform going forward.
that ships directly to consumers and
Earlier in fiscal
2024,
PFG also
acquired
businesses.
The
transaction
added
three
Earlier in fiscal
2024,
PFG also
acquired
OLM
Foods,
which
is
focused
on
warehouses
to this business,
OLM Foods, dedicated
which is focused
on developing
developing
and
high-quality
food
products
and
effectively
PFG   s
facilities
in this
and selling
sellingdoubling
high quality
food
products
and
programs.
OLM
has
partnered
with
our
area.
We
are
optimistic
about
the
prospects
programs. OLM has partnered with our CoreCoreMark
sell
the
for
thisbusiness
platformto
Mark
business
togoing
sell in
inforward.
the convenience
convenience store
store
channel. Convenience
Convenience is
is an
an important
important growth
growth
channel.
Earlier
fiscal
PFG also
acquired
vehicle
PFG,
and
is
avenue
vehicleinfor
for
PFG,2024,
and OLM
OLM
is another
another
avenue
OLM
Foods,
which
focused
ongrowth.
developing
for our
our
company
to is
capture
this
growth.
for
company
to
capture
this
and selling high- quality food products and
programs. OLM has partnered with our CoreMAKING PROGRESS ON ESG INITIATIVES
Mark business to sell in the convenience store
channel.
Convenience
is an
Throughout
fiscal 2024,
weimportant
have alsogrowth
vehiclesubstantial
for PFG, and OLM is another avenue
made
strides in achieving our
for our company to capture this growth.
environmental,
social
MAKING
PROGRESS
ON governance
environmental,
social and
and
governance
(ESG)
goals,
ESG
(ESG)INITIATIVES
goals, encompassing
encompassing areas
areas such
such as
as
responsible
responsible sourcing,
sourcing, energy
energy efficiency,
efficiency,
renewable energy,
wastewe
management,
and
Throughout
fiscal 2024,
have also and
renewable energy,
waste management,
associate
engagement
development.
made
substantial
stridesand
in achieving
our
associate
engagement
and
development.
Noteworthy accomplishments
include
environmental,
social and governance
Noteworthy accomplishments
include
reducing
power
consumption
intensity
(ESG)
goals,
encompassing
areas
such as
reducing
power
consumption
intensity
and
reaching
our
goal
of
an
80
percent
responsible
and reachingsourcing,
our goal energy
of an 80efficiency,
percent
diversion rate
for operational
seven
renewable
energy,
and waste waste
management,
diversion
rate
operational
waste
seven
years ahead
offor
schedule.
Ondevelopment.
the
road,
associate
engagement
and
years
ahead
of
schedule.
On
the
road,
we   ve
started
a
collaborative
pilot
program
Noteworthy
accomplishments
include
we   ve
a collaborative
program
to use started
all-electric
refrigerationpilot
technology
reducing
power consumption
intensity
to
use
all-electric
refrigeration
technology
on
battery-electric
trucks.
We
have
also
and
reaching our goal
of anWe
80 have
percent
on battery-electric
trucks.
alsoyard
introduced
zero-emission,
heavy-duty
diversion
rate
for operational
waste seven
introduced
zero-emission,
heavy-duty
yard
trucks
to
reduce
our
carbon
footprint
years ahead of schedule. On the road,and
trucks to
reduce
our
carbon
footprint
and
ensure
the
safety
of
our
drivers.
Additionally,
we   ve started a collaborative pilot program
ensure
the safety of our
drivers. Additionally,
in the
established
PFG   s first
to
use workplace
all-electricwe
refrigeration
technology
in the workplace
we
established
PFG   s first
Inclusion
Council
and
formed
on battery-electric trucks. We Associate
have also
Inclusion Council
and
formed
Associate
Resource
Groups
(ARGs)
toheavy-duty
encourage
introduced
zero-emission,
yard
Resource
Groups
(ARGs)
encourage
important
conversations.
Itoam
extremely
trucks
to reduce
our
carbon
footprint
and
important
I am extremely
impressed
by the of
organization   s
dedication
ensure
theconversations.
safety
our drivers.
Additionally,
impressed
by the
organization   s
to
fulfilling
our
ESG
commitments
and our
in
the
workplace
we
established dedication
PFG   s
first
ability
to
adapt
and
evolve
along
the
way.
to
fulfilling
our
ESG
commitments
and
our
Inclusion Council and formed Associate
ability to adapt
and
evolvetoalong
the way.
Resource
(ARGs)
encourage
PFG endedGroups
fiscal 2024
in a strong
financial
important
conversations.
I
am
extremely
position.
During
we generated
PFG ended
fiscalfiscal
20242024,
in a strong
financial
impressed
by
thewhich
organization   s
dedication
strong
cash
flow
allowed
us
to return
position.
During
fiscal 2024,
we generated
to
fulfilling
our ESG commitments
and share
our
cash
stockholders
through
strategic
strongtocash
flow which
allowed
us to return
ability
to
adapt
and
evolve
along
the
way.
repurchases
and
pursue
M&A
opportunities.
cash to stockholders through strategic share
We
spent
$395.6
million
repurchases
and pursue
M&A
opportunities.
PFG
ended
fiscal
2024 inof
a capital
strong
financial
expenditures
to expand
warehouse
capacity
We spentDuring
$395.6
million
of capital
position.
fiscal
2024,
we generated
and
add
to our
to keep
pace
our
expenditures
tofleet
expand
warehouse
strong
cash
flow
which
allowed
uswith
tocapacity
return
growth
Additionally,
wewith
completed
and add
to our fleet
tothrough
keep pace
our
cash
to trajectory.
stockholders
strategic
share
$307.7
in acquisitions
Jos  
repurchases
and
pursue
M&A(excluding
opportunities.
growth million
trajectory.
Additionally,
we completed
Santiago,
Inc.)
and
$78.1
million
in
share
We
spent
$395.6
million
of
capital
$307.7 million in acquisitions (excluding Jos  
repurchases.
We
also
used
our cash
flow to
expenditures
expand
warehouse
capacity
Santiago, Inc.)to
and
$78.1
million
in share
reduce
outstanding
debt.
and
addour
to our
fleet
to used
keep
pace
withflow
our to
repurchases.
We
also
our
cash
growth
trajectory.
Additionally,
we
completed
reduce
our
outstanding
debt.
In summary, I am very proud of our
$307.7
million
in acquisitions
(excluding
Jos  
Company   s
achievements
during
fiscal 2024.
In summary,
I am
proud
of our
Santiago,
Inc.)
andvery
million
in the
share
More importantly,
I $78.1
am excited
for
future
Company   s achievements
during
2024.
repurchases.
The remaining
cash fiscal
flow
was
and building upon
the momentum
we have
More to
importantly,
I outstanding
am excited for
the future
used
ourpast
debt.
gatheredreduce
over the
several years.
and building upon the momentum we have
In
summary,
I am
ofyears.
our
gathered
over
thevery
pastproud
several
Best
regards,
Company   s achievements during fiscal 2024.
More
importantly, I am excited for the future
Best regards,
and building upon the momentum we have
gathered over the past several years.
Best regards,
George L. Holm
George
L. of
Holm
Chairman
the Board of Directors
Chairman of the Board of Directors
HUK *OPLM ,_LJ\[P]L 6  JLY
HUK *OPLM ,_LJ\[P]L 6  JLY
October 10, 2024
October 10, 2024
For a reconciliation of non-GAAP to GAAP measures, see the Appendix. *Fiscal 2021 includes a 53rd week.
ADJUSTED EBITDA1
CAGR = 25.9%
NET SALES
Q Foodservice
Q Vistar
Q Convenience
Q Other
in $ millions
2019
2020
2021*
2022
2023
2024
$476
0.5%
$406
41.5%
$625
TOTAL
$58.3 BILLION
$1,020
$1,363
$1,506
8.2%
49.8%



 10/10/2024 Letter Continued (Full PDF)